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Malta
Citizenship by Investment
Malta Residency
The European Islands of Malta
and Gozo
Malta is one of the most
attractive locations in Europe for tax-advantaged private residence. For
non-European persons there is the possibility of acquiring Malta Residency
status under the
Global Residence Programme. Persons of all
nationalities are eligible to apply for residence permits with no discrimination
whatsoever.
A permanent residence permit
entitles its holder to reside permanently in Malta with the freedom to come and
go any time. Moreover, since Malta joined the European Union in 2004 it forms
part of the Schengen Area agreement immediately which means that a resident of
Malta has the possibility of travelling within the Schengen Area without
the need of obtaining a visa. A permanent resident enjoys a privileged tax
status while at the same time benefiting from Malta's wide network of double
taxation treaties. A further advantage of this status is that as long as the
resident abides by the rules of the permit, the permanent resident need not
spend any particular time actually residing in Malta.
Benefits of Malta
Residency
 Schengen Residency
Holders of Malta Residency permits enjoy Schengen
residence, and accordingly, they are allowed to live indefinitely in, come and go
from Malta any time and to travel
freely within the Schengen area and remain in another Schengen country for up
to three months in every six month period.
No Minimum Stay Requirements
Maltese residents are not required to
demonstrate a minimum period of physical presence in Malta for Malta tax or
immigration purposes.
Low Flat Rate of Tax on Foreign Income Received
In the case of the
Malta Global Residency Program,
a 15% flat rate of tax applies to foreign source income received in Malta.
No tax is due on foreign income not used or received in Malta. No tax is
due on any foreign capital gain even if received in Malta.
Remittance Basis of Taxation
Malta's tax system was inherited from British colonial times
and the 1948 Malta Income Tax Act preserves
the classical concepts of residence and domicile, without the subsequent changes
applied under UK tax law.
Individuals holding Malta Residency
are subject to a remittance basis of taxation. They are taxable in Malta only on
foreign source income to the extent that it is transferred to or used in Malta.
Any foreign source capital gains are not subject to tax in Malta even in received or
used in Malta. Taxation is due on income and capital gains arising in
Malta. (See
Tax Savings on
Pension Income).
Exemption from customs duty
Your used household and personal
effects, furniture and other domestic articles (excluding firearms and weapons
of all kinds) may be imported free of duty if imported within six months of your
arrival in Malta. In such cases import licences are not required.
One private motor-vehicle may be
imported free of duty provided:
- it has been in your possession
for a continuous period of at least six months immediately before the issue of
the said residence permit;
- all charges due thereon have
been paid prior to the vehicle’s arrival in Malta, and
- it is imported within six
months of either your arrival in Malta, or of the issue-date of your residence
permit (whichever date is the later)
If you are married, you and your
spouse will only be able to import one car between you on these terms. Customs
duty will become payable on the value of the vehicle as assessed by the Customs
Department, at the time it is transferred to a non-entitled person. A first
registration fee is payable according to the vehicle’s horsepower.
Repatriation of your capital
and income
This applies to:
- Any unspent remainder of the
capital you brought to Malta
- Any income this has accumulated
during your stay
- Any proceeds from the sale of
your property and/or other investments in Malta.
No death duties are payable in
Malta
Though no death duties are payable
in Malta, Transfer Duty (according to the Duty on Documents Transfers Act of
1993) is charged on:
- Immovable property in Malta
- Any shares in a locally
registered company (excluding those companies listed on the stock exchange)
Residency Pages |
Tax Relocation |
Malta Residence Scheme |
Taxation of
Pension Income in Malta
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